CPSC Holds Amazon Accountable for Hazardous Products Sold by Third-Party Sellers

Amazon Ordered to Take Remedial Actions to Protect Consumers

The U.S. Consumer Product Safety Commission (CPSC) has issued a landmark Decision and Order against Amazon.com, Inc., holding the global e-commerce giant responsible for hazardous products sold by third-party sellers through its Fulfilled by Amazon program. This decision marks a significant step in consumer protection, as Amazon must now develop and implement plans to notify purchasers and the public about these hazardous products, and to remove them from consumers’ homes and the marketplace.

Overview of the Decision

On July 14, 2021, the CPSC authorized an administrative complaint against Amazon, alleging that the company distributed certain products posing substantial product hazards. These products included faulty carbon monoxide (CO) detectors, hairdryers lacking electrocution protection, and children’s sleepwear that violated federal flammability standards. The complaint was initially heard by an Administrative Law Judge (ALJ), who ruled that Amazon was acting as a distributor and was responsible for recalling these hazardous products. Both parties appealed the ALJ’s ruling, but the Commission affirmed the decision, culminating in today’s order.

Amazon argued that it was not a distributor and therefore not responsible for the safety of products sold by third-party sellers on its platform. However, the ALJ and the Commission rejected this argument, determining that Amazon’s role in facilitating the sale of these products met the definition of a distributor under the Consumer Product Safety Act (CPSA).

Impact on Consumers

The products in question pose serious risks to consumers. Faulty CO detectors can fail to alert users to dangerous levels of carbon monoxide, potentially leading to poisoning or death. Hairdryers without electrocution protection can cause severe electrical shocks if they come into contact with water while plugged in. Children’s sleepwear that does not meet flammability standards increases the risk of severe burns in case of fire.

Despite the known dangers, Amazon had not taken adequate steps to inform the public about these hazards or to encourage the return or destruction of the products. Instead, Amazon had only sent messages to initial purchasers about “potential” safety issues and offered Amazon.com credits rather than full refunds or replacements. The CPSC found these measures insufficient to protect consumers, necessitating more robust actions from Amazon.

Legal Recourse for Affected Consumers

Consumers harmed by these hazardous products may have grounds to file lawsuits seeking damages. Product liability lawsuits can help victims recover compensation for medical expenses, lost wages, pain and suffering, and other related costs. The lawsuit process typically begins with an initial consultation with a product liability attorney who will assess the case. The attorney will then file a complaint, engage in discovery to gather evidence, and possibly negotiate a settlement. If a settlement cannot be reached, the case may proceed to trial.

The Importance of Legal Representation

Navigating the complexities of a product liability lawsuit without legal representation can be challenging. An experienced attorney can manage all aspects of the case, ensuring that victims’ rights are protected and that they receive the maximum possible compensation for their injuries. From filing necessary paperwork to negotiating settlements and representing clients in court, legal representation is crucial for a successful outcome.

Potential Damages Recoverable In a Product Injury Lawsuit

Victims of hazardous products can pursue several types of damages through a product liability lawsuit. One category is compensatory damages, which aim to cover direct financial losses incurred by the victim. These can include medical expenses related to treating injuries caused by the product and any lost wages due to time taken off work for recovery. This type of compensation ensures that victims are not financially burdened by costs that arise directly from the product defect.

Another category is consequential damages, which provide compensation for indirect losses that stem from the injury. This can encompass pain and suffering endured by the victim, as well as emotional distress caused by the incident. These damages recognize the broader impact that a hazardous product can have on an individual’s overall well-being and quality of life.

In certain cases, where the conduct of the manufacturer or distributor is deemed to be particularly egregious or reckless, punitive damages may also be awarded. These are intended not only to compensate the victim but also to punish the wrongdoer and deter similar conduct in the future. Punitive damages serve as a strong message against gross negligence or intentional misconduct, aiming to promote safer practices within the industry.